Different Management Levels in Bates,Inc Required:
A

question 15

Essay

Different management levels in Bates,Inc.,require varying degrees of managerial accounting information.Because of the need to comply with the managers' requests,four different variances for manufacturing overhead are computed each month.The information for the September overhead expenditures is as follows:
$\begin{array}{lr}\text { Bud geted output units } & 3,200 \text { units } \\\text { Bud geted fixed manufacturing overhead } & \$ 20,000\\\text { Bud geted variable manufacturing overhead } & \$ 5 \text { per direct labor hour } \\\text { Bud geted direct manufacturing labor hours } & 2 \text { hours per unit }\\\text { Fixed manufacturing costs incurred } & \$ 26,000 \\\text { Direct manufacturing labor hours used } & 7,200 \\\text { Variable manufacturing costs incurred } & \$ 35,600 \\\text { Actual units manufactured } & 3,400\end{array}$ Required:
a.Compute a 4-variance analysis for the plant controller.
b.Compute a 3-variance analysis for the plant manager.
c.Compute a 2-variance analysis for the corporate controller.
d.Compute the flexible-budget variance for the manufacturing vice president.

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Definitions:

Warrants

Financial derivatives that give the holder the right, but not the obligation, to buy or sell a security—most commonly equity—at a predetermined price before a specified date.

Bonds

Fixed income securities that represent a loan from an investor to a borrower, typically corporate or governmental, with terms including the interest rate and repayment date.

Privately Placed Bonds

Bonds that are sold directly to a small group of investors instead of being offered to the general public, often to avoid the costs and regulations of a public offering.